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Do You Know What is in Your Thematic ETF?
Part of the ETF marketing machine is launching thematic ETFs with a catchy symbol based on the latest trends. However, not always does the ETF offer exposure to the desired theme as you might think it should. For example, some investing themes may be too narrow and do not have enough established public companies trading in that niche to create a diversified portfolio that provides significant exposure to that... -
21Shares Teams Up With Cathie Wood’s ARK on Proposed Bitcoin ETF
21Shares filed this week for a Bitcoin ETF. 21Shares and Ark join a host of other firms, including VanEck, Fidelity, First Trust seeking to be the first bitcoin ETF in the U.S. approved by the SEC. You can view the S-1 Registration filing here. -
New ESG ETF Sees to Provide Active Corporate Governance Oversight
The Engine No. 1 Transform 500 ETF (symbol: VOTE) will invest in a market-cap weighted index of the 500 largest U.S. stocks, tracking the Morningstar U.S. Large Cap Select Index. Unlike a passive Vanguard S&P 500 Index fund, investors in the ETF will also get a team of active investors who vote carefully on shareholder issues, set rigorous goals for boardrooms, and have the ability to successfully run change... -
It’s capital gains distribution season -check your ETFs (and mutual funds)
Mutual funds and even some ETFs typically distribute taxable capital gains to shareholders in December of each year. ETFs are commonly more tax efficient and thus less likely than mutual funds to have an annual capital gains payout. However, there are some ETFs that may have capital gains distributions, and you should confirm the distribution status annually to avoid an unexpected tax liability. Some fund groups are better than... -
Factors to consider before adding a thematic ETF to your portfolio
In the quest to launch successful products, ETF sponsors have ventured into thematic segments of the financial markets. Think robotics, artificial intelligence, fintech, online retail, cyber security, etc. There has been mixed success among issuers, as some of these products have rapidly grown to $1 billion in AUM such as ETFMG’s Prime Cyber Security ETF (symbol: HACK), while others never gained traction and were closed within a year. Thematic... -
China A Shares weight increases to 15% in MSCI Indexes
MSCI announced today that they have increased the inclusion factor of all China A Large Cap shares from 10% to 15% in the MSCI Indexes notably MSCI Emerging Markets Index and MSCI ACWI Index, coinciding with the recent Quarterly Index Review, effective August 28, 2019. MSCI’s previously announced decision to increase the weight of China A shares in the MSCI Indexes using a 3-step inclusion process beginning with the... -
The Next Markets for ETF Disruption? Hedge Funds, Private Equity and SMAs
Hedge funds and private equity are two large markets with huge fees and lockup periods that are ripe for disruption by ETFs, says Matt Hougan of ETFs.com at their annual Inside ETFs conference. Such markets will continue to drive growth in assets in ETFs, which currently account for only $5 trillion of the $150 trillion in global assets. Despite their growth, trading in ETFs is falling, suggesting that ETFs... -
Multi-Asset ETF Portfolio Best Route for Smaller Endowments, Isenberg Professor Says
Hossein Kazemi, senior adviser to the Chartered Alternative Investment Analyst (CAIA) Association and professor of finance at the Isenberg School of Management at the University of Massachusetts, is claiming that many endowments should skip investments in illiquid assets such as hedge funds and private equity in favor of a multi-asset ETF portfolio. Kazemi argues that most endowments should not attempt to mimic the Harvard or Yale Endowment portfolio mix by... -
A Look at Managed Futures
In a recent article on Bloomberg.com, Ye Xie discusses one winner in the Brexit rout. Over the past few days, managed futures funds were one of the few investment classes to boast positive returns. One fund, AQR Managed Futures Strategy Fund, rallied 6.3% over the past 2 days (as of June 27, 2016). What are managed futures? Managed Futures are an example of an alternative investment which adds diversification... -
ETF Model SolutionsTM ETF Spotlight: Low Volatility ETFs
Recently, low volatility ETFs have become increasingly popular. The PowerShares S&P 500 Low Volatility Portfolio (SPLV, $41.19 – NYSEArca) invests in the top 100 S&P 500 stocks that have been least volatile for the trailing 12 months. SPLV seeks to alleviate downside risk and the opportunity to participate in rising markets. However, low volatility ETFs like SPLV aren’t just for risk-averse investors. Over the last 25+ years, low volatility...
